tv Real Money With Ali Velshi Al Jazeera December 7, 2013 7:00pm-7:31pm EST
>> you're watching aljazeera america live. the veteran detained by north korea is back home. he landed this morning and was reunited with his wife and son. >> chuck hagel was in afghanistan today. he was told the stalled deal between the two countries would be signed before the election. an egyptian appeals court reduced a controversial sentence for 21 women and girls. they were arrested for protesting against the government, causing widespread outrage across the country.
the appeals court reduced their sentences and then reds them. >> a cold snap across much of the country is paralyzing travel. several deaths have been linked jt)jt snow to the midwest all the way down to texas. one person was killed when his car hit an icy park of road. >> go to aljazeera for more. >> the government said more americans are getting back to work and they have the numbers to back it up. quantity matters more than economy, still, this economy is starting to get more real. >> if you like your doctor, you
can keep him, as long as why your doctor is still in your network approximate. >> smokers beware. a company says if you light up, there's no job for you. this is real money. >> this is real money, you are the most important part of the show, join our live conversation on twitter. this is a glass, and it's full. it's not half empty, it's no the half full. it's full. this glass represents the government's employment report. five years after the worst recession since the great depression, america's economic recovery appears to be on solid footing. in november, the u.s. economy added 203,000 net new jobs. that is coming off revised
figures that now prove we've added almost 200,000 new jobs a month since the summer. so far, the economy is up 2.1 million jobs this clear. 2013 is likely to be the best year for hiring since 2005. now, all those new jobs tarting to make a real dent in the unemployment rate. it fell to 7% in november, a drop of .3 from october and lowest in five years. that's great news. you know what? ignore this and focus instead on the number of jobs added every month. in this case, 203,000 jobs. i want you to pay attention to this number. labor force participation, 63%. that is bumped upward from october when participation had fallen to its lowest level in more than 35 years. people were falling out of the workforce because they couldn't find jobs or had given up trying altogether.
november's reversal upward showed people coming back into the workforce instead of leavings. we see how job creation is keeping up workers coming into the workforce. this is not a trend until we see it happening consistently for months. either way, this is a good jobs report, but more work needs to be done to get the economy back on track. construction and manufacturing added a combined 45,000 jobs, almost a quarter of all new jobs created in november. those positions typically may $26 an hour. that's good. before we get into excited, nearly oh one in five of thed last month came from the relatively low sectors of retail. the quality of the jobs created is not as good as many of the
middle class jobs that were destroyed during the recession. we have the story. >> it's been a job recovery built on part time either, waiters, waitresses and other jobs that don't really pay much. during the recovery, most growth has been focused on key occupies, row tail sales, food preparation, laborers and freight, waitresses and waiters, office clerks, customer service represents, fabricators, construction laborers and grounds workers. that according to the+ez economc pulse, most of these jobs have been created ranging from $7.69 to $13.66, compared to the median hourly wage of all workers ofgo around $24 an hour. >> job creation has been unacceptably low. let's hope it's not the new normal. >> during the recession many jobs lost were middle class,
like in construction, but middle class jobs aren't coming back as fast. >> according to data, during the recovery, the number of low wage jobs has grown the fastest. middle income jobs are still nowhere near prerecession levels. that's not unusual. data from the federal reserve bank of atlanta said 40 to 50% of job jane have been in recent recovery. that many economists agree this is no the what we want. the jobs that come back in a robust economy pay better. yet the u.s. economy is getting stronger. >> after the november jobs report came out, i spoke with u.s. labor secretary tom press. i spoke to him about too few
solid middle class jobs. >> this is a very solid report in the sense that the job growth is very broad-based. as you know, we've had 45 consecutive months of private sector job growth to the tune of 8 million plus jobs. you look at the manufacturing sector, another solid month. in november, you look at manufacturing over a trajectory from february, 2010, we've grown more jobs in this sector than anytime since the mid-90 said with that wages are up not only in manufacturing, but elsewhere. u$is is solid, bus undeniably unfinished business, wayg too many people suffering. in particular with, what this report shows is that the problem of the long term unemployed persists. >> i know you said that congress needs to act. we're with each other
acknowledge, but the fact that congress hasn't acted in so long, none of us are holding our breath that it's actually going happen. what is the precondition for getting long term unemployed who become disdiscouraged and lose effective skills back into the game? >> if you look at the history of congressional efforts on the long-term unemployed, including recent history, there's been a long bipartisan tradition of extending unemployment benefits when we've had unemployment rates at this level. it would be unprecedented for congress to do nothing with the unemployment rate this high. i remain confident that things will happen. some of the other news from this report, which is heartening is that when you look at the broadest measures of unemployment and we have a measure that looks at not only folks who are out of work, but
folks who are discouraged, folks who are margin ally attached, that unemployment rate had its largest drop last month in the history of that data point, and that is -- that's good news, that tells us that we're going to grow such that folks who have been discouraged are starting to reenter the labor market. >> the soft line retailers, probably a half a dozen of them came out with earnings reports that resembled reports that came out in the fall of 2007, before they found anything wrong with the economy. we get very mixed results from consumer confidence, some look very strong, some veryqx weak. are you concerned that the psychology of the consumer might
have more to do now? >> if i'm employed and i'm going to lose my benefit on december 28, i'm not going to be buying holiday gifts now for my family, because i've got to feed my family. that has away undeniable fact on people. there's 39,000 people in ohio that are going to lose their benefits on the 28 of december. if you look at the data, in the retail setting, it shows that the on line sales are moving quite briskly. you see for instance, you know, the transportation warehousing industries, the amazon type sales industries, things are going pretty well in that can text. people seem to be gravitating more and more toward shopping at home from their computer. i expect that will increase over
time. confidence is a huge driver of growth, whether business confidence, individual confidence, and there are some in congress who just haven't given people reason to feel confident, haven't given business owners reason to feel confident. haven't given work he is reason to feel confident, federal employees, they haven't given recent to be confident. >> we're getting drug testing, co bako testing could keep some of you from their next job. the big company that won't hire smokers. >> the controversial of trading the money in your 401k. some say it's a good way to grow your money, otherwise say it's a gamble.
the new health law has many physicians wondering if they'll be able to keep their self insured patients or accept new ones that get covered on the exchanges or through medicaid expansion. >> physicians can expect seeing more patients coming into their offices with health insurance and a lot more covered through medicaid, because the expansion is one of the biggest parts of the insurance expansion in the affordable care act. >> that's a problem for doctor as millions get covered. many physicians restrick the number of medicate patients they accept because of low reimbursement rates. >> it comes down to how much am i going to be paid and am i going to have the autonomy to practice the way i want to practice. >> look to thens right. >> a brooklyn based ophthalmologist said private insurance for a full eye exam
will reimburse at rates up to $150. medicare pace him about $145, for the same procedure, medicaid pays only $63. obamacare is supposed to bump up those payments for two years to encourage participation, but the problem has had delays. >> primary care and medicaid are going to have to go up 73% nationally. in new york, they to have triple. >>ine though private insurance companies are selling plans, doctors remain ambivalent about whether they'll even take that insurance. some patients say they will sit out the year. nationwide, four i have not 10 physicians say they are still weighing options. >> the majority of doctors are in the middle, and most are very happy that uninsured patients will be insured and that people will get more preventative care.
prom that standpoint, most doctors are onboard. the difficulties are numerous, however. >> most of those "difficulties on you" boil down to money. doctors notified of insureds on the exchanges said those payments will be below medicaid patients. for patients who have insurance, many new plans also carry higher out of pocket costs, which can create extra hurdles for doctors trying to collect. that could leave if i as i says on the hook for those costs. >> many insurance oh companies are not going to be advicing us of the actual deductible's ahead of time, so that the doctor cannot collect in advance. the doctor has to wait for the
insurance company determination, bill the patient and hope they can pay. >> that may not make sense when the drive to lower health care cost is already causing pressure on their bottom line. >> the new healthy is supposed to help streaming all of this. if you can make it more transparent, more doctors will be encouraged to join the exchanges. improved care and lower cost are the goals. a league of doctors, engineers have side stepped the politic and turned to innovation instead. they believe the answer;x to better health care lies with some something you might have in your pact right now, a smart phone. getting diagnosed for an ear infection could be as simple as using your phone. >> eric is showing off his new
item, the thing doctors use to look into your years. >> they have my ear drums. >> doug loss predicts there will be a day when a parent sends a picture such as this so their doctor. >> we are taking a common tool and surgeon it into a medical tool. >> doctors, engineers and the entrepreneurs showed the latest prototypes. this takes pictures over time of a wound that's healing, so a doctor cab monitor progress from afar. >> it creates efficiency by having the ability to reduce follow up visits. >> you can freeze an image, take a picture of it.
>> we have seen growth rates between 30% to 50%, some higher, 75%. >> don't expect to see them in the stores immediately. en that of these devices prototypes and seek clearance. some are totally against it and say there is no value in this. they're going to come to the hospital anyways. the ones that ever experience, they are really putting a lot of effort into being an ambassador for it. >> a medical student at johns hopkins university: >> there are some types of data that should be collected by patients as opposed to a the an annual physical. >> he sees when many people will be able to perform an entire physical on the smart phone. >> we have things as easy as a
blood pressure can you have, plug and9x play. >> he thinks costs will be reduced over time. analysts agree. >> home monitoring of post acute patients have decreased readmission rates. >> even with the reluctance to adopt these new technologies, physicians say ready or fought, health care is evolving. >> one absolute is that health care is going to be very different five years from now. how it's going to benefit you is largely going to benefit you. that. >> slow and steady wins the race. that's the 401k. strategy.
>> a a major u.s. employer is sending a strong message he to potential employees, if you smoke, we don't want you. significant in a announced it will not hire people who test positive for tobacco us. we have more on what some believe could become a trend. >> significant in a is one of the leading insurance companies on the planet.
home run telling future employees you cannot work for us if you smoke, chew tobacco or use e. cigarettes. >> on tuesday, the company announced starting january 1, 2014, all perspective employees will not only be tested for drug use, but also nicotine use. >> a nationwide company is going to have to tailor their policies to the particular state they're in. there are states in which this would be unlawful. >> it plans to select states where it's legal to do so. 21 states including texas with, arizona, massachusetts and florida all allow employees to test for nicotine. based on the results of that screening, cigna now reserves the right to rescind job offers. in a statement, it says current employees will not be affected unless they leave cigna and are
rehired of a a period of six months or longer. cigna believes in encouraging employees to be healthy and lead by example. the move is also designed to remove long material health care cost. smoking is estimated to be responsible for $200 billion in annual health-related economic losses. the c.d.c. said nicotine is detectable in blood days after use and some by products can be measured in urine, hair and saliva. who's testing? this is a trend among health care businesses. cigna is joining alaska airlines, baylor, and the cleveland continue nick. aljazeera. >> cigna said it's using urine tests. it hasn't clarified if there will be repeat tests for those who are hired.
some are increasingly worried that 401k's won't leave them with enough money for retirement. some are getting advisedkñ to me their moneys in and out of 401k's. >> sandy lee geiger, a 47-year-old manager figures she's going to need $4 million to have a financially secure retirement. top of my list, i want to go to them freely and not worry about pinching pennies. >> sandy, who does not believe social security will be around has been saving money for nearly 20 years. even though she paid close attention to the market and actively managed the funds, she realized that the rate her money
was growing, she couldn't possibly have enough for her golden years. >> i'm not going to save $4 million out of what i don't spend on food and shelter. it's not going to happen. it has to grow. >> in search of growth, sandy found a service called horizon. it gives clients customized monthly trading advice for her retirement plan. she's followed the strategy since 2008. it you looks at people like sandy on an individual basis. clients must figure out what their ideal retirement looks like and what it will cost. to get you there, compass looks at investment choices available in your 401k and gives you trades to execute every five weeks.(y it says to by pass funds who charge you if you don't hold them for longer than five weeks.
stock funds have the highest rate i can. that is what it is wreck behinding. a very risky portfolio compared to a balance strategy. when investors reach their retirement, they park them in a fund. >> you grow your accounts large enough and putting them into guaranteed vehicles that will pay you in interest everything that you would have been getting from your salary. >> compass, which charges $600 a year is not the only in this space. active 401k will give you trading suggestions. 401k maximizer does the same for about $100 a year. >> unlike compass, the lower lost companies offer general trading portfolios and it's up
to you to pick a strategy. critics point out that these companies and their trading advice is not regulated. financial advisers like jonathan question this controversial trading practice, worrying about moving in and out of investments will make time your enemy, not your friend. >> you are not giving me time to play out my pieces to see if what i decided is right. >> many subscribe to easy trackers news letter. january guard has asked 401k maximizer to stop writing about their funds, after finding a group of airline pilots were using them. >> if i think this company has tremendous potential, yet i have to worry about investors selling
it in a month, how can i make any investment? >> sandy's worried about investment. >> this is to create funds that are going to be useful for somebody's whose 62 or looking to retire. >> a woman who has a clear vision of what she wants in retirement and how much money she'll need to get there. >> that's our show for today. thanks for joining us.